My superpowers. I make really, really
fast decisions when I make them.
Speaker:I give the person that I'm going into
business with or making a decision with my
Speaker:all and I don't keep one foot
on each side of the fence.
Speaker:Well, hello and welcome to another edition
of the E-Commerce Evolution podcast.
Speaker:I'm your host, Brett
Curry, CEO of OMG Commerce,
Speaker:and today I am delighted
to welcome to the show Leah
Speaker:Garcia. We met in Denver, Colorado.
Speaker:We both spoke at Ezra Firestones last
ever, the final, the grand finale,
Speaker:glue and Mastermind. Lee
and I both spoke there.
Speaker:I think you spoke right after me,
and so I was up close to the stage.
Speaker:I heard you talk and thought, man,
got to get you on the podcast.
Speaker:And so here we are today.
Speaker:But Leah is an award-winning entrepreneur.
Speaker:She won the EY winning Entrepreneur,
Speaker:female entrepreneur class of
2024. So that's Ernst and Young.
Speaker:We'll hear more about that as we go.
She's built a company called New Lastin,
Speaker:which is really has some
shocking retention numbers
that we're going to unpack
Speaker:and that you're going to learn from.
She's been involved with the rodeo,
Speaker:she's been on tv, she's sold on QVC.
She's done a little bit of everything.
Speaker:It turns out as we got to talking, we
know about a bunch of the same people,
Speaker:and so she's just an impressive
human and brings amazing energy.
Speaker:Although she did confess to me
this energy is going to be raw.
Speaker:It's going to be all Leah because she's
got no coffee right now, no caffeine.
Speaker:And so I love that you're willing
to do this podcast without caffeine.
Speaker:You're traveling, didn't have access
to coffee. So with that, Leah,
Speaker:welcome to the show and how you doing?
Speaker:Thank you.
Speaker:I tried to make my screen smaller
to see your face not so ginormous.
Speaker:And right now all I've got is
an exclamation point that says,
Speaker:thanks for joining, but
if you can still see me,
Speaker:I'm literally looking at a blank
screen right now, which is fine.
Speaker:Yeah, yeah, you look great. You
look great. So yeah, perfect.
Speaker:Perfect. This is more
like a Braille podcast,
Speaker:and I'm actually down with that because
oftentimes I sit around staring at
Speaker:myself in the mirror way too long.
So we're done with that. No coffee,
Speaker:no reflection, complete,
Speaker:just full on transparency.
Speaker:I love it. I love it. So
amazing. So let's start here,
Speaker:Lee,
Speaker:I want to get into some of your story as
we go because it's really fascinating.
Speaker:You've done a lot of amazing things, but
what is Elastin? Why did you start it?
Speaker:And then we're going to talk about some
shocking numbers you've been able to
Speaker:create in terms of subscriber percentages
and return customer percentages and
Speaker:LTV and some stuff that's really,
really valuable right now.
Speaker:But what is new lesson
and why did you start it?
Speaker:The journey really was personal
problem, resourceful resource,
Speaker:meaningful monetization.
Speaker:I had an issue that was going on
as I was aging and losing elastin
Speaker:and it manifest itself in
ways I was in television,
Speaker:but the wrinkles, the lack of
vitality, hair was thinning eyebrows.
Speaker:I over plucked, that was all on me.
Speaker:Things were happening in my body as I
started aging in this world of being front
Speaker:facing camera.
Speaker:And I was introduced to this very
powerful protein called elastin,
Speaker:and I met a microbiologist and I
had my aha moment where I realized
Speaker:that this was truly
Speaker:the miracle youth protein that
nobody else was really addressing.
Speaker:People were talking about
collagen but not about elastin.
Speaker:So elastin was for me that aha moment.
Speaker:And the company was founded on science.
Speaker:So bio designed an elastin
replenishment product for
Speaker:scalp hair, beautiful skin.
Speaker:And the thing that makes
it so novel is that it's
Speaker:one of the first bio designed proteins
that's identical to the human body,
Speaker:meaning that when you put
this product on topically,
Speaker:your body recognizes it as native so
it doesn't fight with it. And now they
Speaker:use fancy words like
biomimetic bioidentical,
Speaker:but your body loves these types of
proteins. It says, oh yeah, I make this,
Speaker:I produce this. I know what to do with
this so that I'm going to work for you.
Speaker:And it's probably one of the
most natural ways to continue
Speaker:getting the results that you're looking
for. So I fell in love with the science,
Speaker:even though I'm not a scientist,
Speaker:but that's how the whole business
started was I had a personal problem.
Speaker:I found this solution which was elastin.
Speaker:It wasn't being addressed in
the marketplace, and I thought,
Speaker:I can really change lives here.
Speaker:I can do something for women, especially.
Speaker:I started with women that
wouldn't just give them results,
Speaker:but that would give them so much
something bigger like their confidence,
Speaker:their identity, their sense of self,
and that's what we're doing at Elastin.
Speaker:That's fantastic. And so your
core products are hair lash, brow,
Speaker:correct.
Speaker:So talk a little bit about
your hero products and then
we're going to talk about
Speaker:your incredible results and
what we can learn from 'em.
Speaker:I started the company
with two hero products,
Speaker:which is lash and brow, and boy,
Speaker:timing is everything. So
we did have some skincare.
Speaker:I've been using the
skincare for about a decade,
Speaker:but it was a prototype formula and wasn't
really commercialized, but I used it.
Speaker:I've always been using science-based
skincare, wound healing,
Speaker:tissue regeneration. I've
never been an Avon girl.
Speaker:I've never used anything that was sort
of what you would at a department store.
Speaker:So I don't know if that's just because
of my professional athletic background.
Speaker:You're always playing around with what's
the newest nutritional supplement or
Speaker:what's the newest thing that you can
concoct so that you can go faster or climb
Speaker:higher and do all the things
that you want to do to win.
Speaker:So the lash in the brow serum
had demonstrable results
Speaker:within some people a
couple of weeks, six weeks,
Speaker:eight weeks by 12 weeks.
It was just mind boggling, the changes.
Speaker:And so we had these gorgeous
before and afters and
Speaker:that was a really fun
product to bring to market.
Speaker:But my dream was always to
be able to tackle the hair,
Speaker:but I just knew that that was to
try to get the same amount of active
Speaker:ingredients in a 50 mil container that
would give the same demonstrable results
Speaker:in an amount of time that wasn't going
to cost somebody their arm and a leg.
Speaker:That was the journey that took a
wee bit longer to get that really
Speaker:pinpointed so that we just didn't have
a $400 bottle that we were trying.
Speaker:To sell. Yeah, little bit difficult.
Speaker:Even if the results are great and
we all want to look youthful enough,
Speaker:vibrant hair and skin
and brows and lashes,
Speaker:hard to justify 400 bucks for a
bottle of shampoo. That's for short.
Speaker:So let's unpack something Leah,
Speaker:because there's a lot that's
impressive about you, by the way.
Speaker:You're an amazing presenter
on stage, you look great,
Speaker:you take fitness seriously.
You're aging gracefully.
Speaker:You got so many cool things going
on, but you shared this with me.
Speaker:You have 80% blended returning revenue,
Speaker:so 80% of your revenue is
blended returning customers,
Speaker:65% subscription based for customers.
Speaker:Your A OV is 90 in the 94th
percentile of your vertical,
Speaker:and then your LTV is off the charts.
We'll talk about that in a minute.
Speaker:But how have you done this?
Because I know this is by design.
Speaker:You said this was the goal from the
beginning. I know it's a great product,
Speaker:but how do you get to that 65% of
your revenues from subscriptions?
Speaker:80% is blend to returning
customers. How do you do it?
Speaker:Well, first of all, you better
have a product that works, right?
Speaker:And so now there's all
sorts of fancy words for it,
Speaker:but back in the day it was word
of mouth and the trajectory to
Speaker:getting a really nice return customer
isn't just putting in cancellation
Speaker:prevention, finding the right
tech stack, which is key.
Speaker:I think that if you break it
down into four categories,
Speaker:you're looking at discover,
Speaker:discover your customer pain points,
Speaker:that's going to be the first thing that
you need to do. Put skin in the game,
Speaker:literally something that is a personal
problem that you've lived through that
Speaker:you can then identify and that immediately
is going to give you a product that
Speaker:people are going to want and
to understand and can be the
Speaker:heartbeat of the formula.
Speaker:And then you want to make sure that you're
Speaker:identifying the things in your
business model that are the defeat,
Speaker:repeat moments, what's defeating them?
Is it a bad value proposition? Is
Speaker:it a shitty product which we don't have?
Speaker:And then the final one,
which I think is really,
Speaker:really key is do you have a
Speaker:gap?
Speaker:Is there a frustrating technical
experience for the customer?
Speaker:Because let's face it, nobody wants to
get to the finish line to buy something,
Speaker:to have tech breakdown or their
website not work or gosh dang it,
Speaker:I've already given you my
credit card five times.
Speaker:Why do I have to go
find that number again?
Speaker:There's these points that happen in a
customer journey that will just throw them
Speaker:off. They'll just, I'm done. I'm
done with you. That was frustrating.
Speaker:It wasn't fun, it wasn't pleasant.
Speaker:So these frustrating experience will
break down that repeat customer.
Speaker:And then the biggest one for us, honestly,
Speaker:we did really well up to, geez,
Speaker:last year because we had
such a great product,
Speaker:we cared so deeply about our customers,
we did nice things for our customers,
Speaker:but I still didn't have
the right tech partners,
Speaker:and that was really the missing link
for me getting up to this 80% and
Speaker:65% was finally plugging in the right tech
Speaker:partners.
And my tech stack isn't anything novel,
Speaker:but it just started working once I had
left hand and right hand talking to one
Speaker:another.
Speaker:Yeah, so it all starts
with product, right?
Speaker:We got to have a product that is amazing
that we want to keep ordering again and
Speaker:again. That's so good that we're telling
our friends about it, things like that.
Speaker:That's solving a real problem. We
got to then make the process easy.
Speaker:We've got to have good tech solutions.
There's a lot that goes into that.
Speaker:But what's interesting, and you
talked about solving a real problem,
Speaker:I want to give a quick shout out to Dean
Brennan. He was a guest on the podcast,
Speaker:CEO of Heart and Soil.
Speaker:These are meat based
supplements as a weird concept.
Speaker:I do plant-based supplements
in these supplements,
Speaker:but he tipped me off on this joint care
because as I've been aging, I work out,
Speaker:I run, I do things, joints hurt,
Speaker:and he tipped me off to this joint
care supplement. It's fantastic.
Speaker:I've never taken anything
like I don't ache at all.
Speaker:We went on a trip to Vegas just before
actually the Denver event where I spoke
Speaker:with you and a couple
of guys were with me.
Speaker:We were running on the pavement and they
were all complaining about being sore.
Speaker:And I'm like, I feel great. My
joints don't ache at all. Anyway,
Speaker:so that's a product where
I started taking that.
Speaker:I am not going to unsubscribe from that.
Speaker:That is going to become part of
my routine because I feel awesome.
Speaker:And so same is true for you though,
man, the skin is looking good,
Speaker:the brows looking good,
the hair's looking good.
Speaker:We're just going to keep buying.
So that makes a ton of sense.
Speaker:Talk this out. Lemme on to
what you just said because
Speaker:that is so key, right? So you have
a product, he tells you about it,
Speaker:you use it, it works, and then what
do you just do? You told me about it.
Speaker:Now I'm curious. And that's
what we're talking about.
Speaker:That's how you get that
sticky customer. It's no one.
Speaker:If I can get on that soapbox again,
and you've heard me get on my soapbox.
Speaker:If you've got a product because you just
want to make money because you want to
Speaker:sell, because you just want
to cut corners, do people,
Speaker:if you will, they might
buy maybe once or twice,
Speaker:but ultimately it's not
going to be the longevity.
Speaker:It's not going to be what's going to
serve them well in the long run because
Speaker:ultimately people don't want crap.
They want something that works.
Speaker:It's going to be grind.
Speaker:You're always going to have to be
hustling for that next sale where,
Speaker:whereas with you with your
product now 65% of your revenue
Speaker:comes in automatically
through subscriptions,
Speaker:and then another 15% comes in
through repeat customers anyway,
Speaker:so it's really awesome.
Speaker:Talk about some of the things you
did to remove friction from the
Speaker:shopping process to make
subscriptions easier.
Speaker:And you have any insights on,
Speaker:do you get first purchase take rate on
subscriptions or is it more like they try
Speaker:it once and then you're getting them on
subscriptions through email and SMS and
Speaker:remarketing campaigns? Talk
through some of the tactics there.
Speaker:First. Yeah. Okay. So
when I first started,
Speaker:I bootstrapped the company and my claim
to fame was that I went from zero to
Speaker:17 and a half million before
I hired my first employee.
Speaker:No way.
Speaker:Yes, that's the claim to fame.
That being said, I did have,
Speaker:excuse me,
Speaker:I did have an agency that I
had hired that really helped me
Speaker:with my digital marketing
and they helped me with my
Speaker:paid media marketing.
Speaker:So I wasn't able to really control.
Speaker:They had their things
they were working on.
Speaker:So I started with bold subscriptions
and Bold just did not work for me.
Speaker:We didn't have the right website
and the right theme and the right
Speaker:anything to manage that
subscription platform.
Speaker:And then we transferred.
Speaker:Once I started professionalizing and
bringing in employees and we're looking at
Speaker:like 20, 21 at this point,
Speaker:then I transferred over to another
subscription platform and that one didn't
Speaker:work out at all.
Speaker:They were very tech heavy and I still
didn't have the internal tech because I
Speaker:was bringing everything in house. So
it was just a mismatched relationship,
Speaker:just literally oil and vinegar.
And so then
Speaker:ultimately I got a cold call from
a recharge rep that said, Hey,
Speaker:Leah, so-and-so from Recharge and I
don't like cold calls, but I said,
Speaker:you've got five minutes to convince me
why I should switch to your platform.
Speaker:And then ultimately we arm wrestled
and negotiated a good contract,
Speaker:which is something that was very important
to me. And then I signed on and when
Speaker:I go, I go deep. I don't
wish my superpowers,
Speaker:I make really, really fast
decisions when I make them.
Speaker:I give the person that I'm going into
business with or making a decision with my
Speaker:all, and I don't keep one foot on
each side of the fence. It's amazing,
Speaker:a good
Partner.
Speaker:So they then introduced me
to a web development team
Speaker:that at first I didn't hire,
but I really liked them.
Speaker:And then eventually I realized that I
still didn't have left hand and right hand
Speaker:talking and that these teams
needed to all be working in Shopify
Speaker:Plus.
Speaker:So my basis for my tech
stack is literally absolute
Speaker:web recharge and Shopify Plus.
Speaker:And then from there you can build out
with the Klaviyo's and the postscripts and
Speaker:all the new things that come around.
Speaker:But because they all work
together collectively and kind of
Speaker:synergistically,
Speaker:that made my job easier
so that we could use the
Speaker:insights. And I'll tell you with
Recharge, constantly innovating,
Speaker:they came out with their
cancellation prevention,
Speaker:which was telling me I knew
my customers were overstocked,
Speaker:but I didn't know to what degree.
Speaker:So then when I find out that I'm
30% plus overstocked with customers,
Speaker:which is why they're churning, then
I can really do something about it.
Speaker:So then my web tech team got together
and we created a really bespoke,
Speaker:a really bespoke
Speaker:journey whereby now we changed
our subscription so that we
Speaker:open with a 10 week supply because
Elastin is a product that you need to use
Speaker:over time to see the results.
Speaker:Got.
Speaker:It. So instead of maybe them
picking haphazardly six weeks,
Speaker:despite the fact that we tell them
otherwise, then they get overstocked.
Speaker:Then we transfer from that 10
week supply to a five week supply,
Speaker:for example,
Speaker:so that they now have a manageable
cadence coming in with their
Speaker:subscription. And that
immediately turned things around.
Speaker:I mean that alone,
Speaker:we saw an uptick in our subscription
Speaker:take, and then we saw a decrease in churn.
Speaker:So churn can hover between eight to 10 ish
Speaker:percent, which me I'd
love churn to be about 2%.
Speaker:No doubt.
Speaker:I'm a dreamer.
Speaker:But the customers that were sticking
around then became stickier,
Speaker:if you will.
Speaker:And that's when that lifetime value for
our subscription customers could also
Speaker:be identified as a ridiculous number
Speaker:compared to non-subscribers.
Speaker:I think it's $146 for our,
Speaker:no, excuse me,
Speaker:$436 for our subscriber lifetime value
Speaker:compared to 186 for non-subscribers.
Speaker:Way.
Speaker:More than double.
Speaker:That's huge, right?
Speaker:It's huge.
Speaker:And then we do that smart
cancellation prevention,
Speaker:which then saves us an additional
7% of would be cancellations.
Speaker:And that's all done through automation
and thoughtful touch points.
Speaker:So something that we
just didn't have before,
Speaker:but I'll tell you the
biggest thing for me,
Speaker:the thing that really turned my business
is that our customer service team,
Speaker:which we have an in-house team of work
from home moms that are just amazing.
Speaker:It's amazing.
Speaker:We have always been one of the
top performing brands on gorgeous,
Speaker:the platform that we use for
cx, our tickets went down 50%,
Speaker:I'm pausing there.
Speaker:Tickets went down 50%
by having all of these
Speaker:optimizations, all of this website flow,
Speaker:this smarter website,
this smoother website,
Speaker:all of those friction points, once
they were removed, I'm saving money,
Speaker:I'm making more money, and
my customer service team,
Speaker:it has 50% fewer tickets,
happier customers,
Speaker:and we're not even paying that
higher platform anymore. On Gorg.
Speaker:We'd had to keep up in
our fee for our agreement
Speaker:because we were just so
much customer service,
Speaker:so much customer service. And
now that's being eliminated.
Speaker:It's amazing. So now you're cutting down,
Speaker:you're able to staff less or you're
saving on costs for answering tickets.
Speaker:But think about it from
the customer's perspective.
Speaker:Nobody wants to submit a ticket,
nobody wants to interact.
Speaker:Even if customer support is
delightful, it's a stay-at-home mom,
Speaker:and they're just a joy to talk
to. I still don't want to do it.
Speaker:And so if you can eliminate that,
it's even better. So part of that,
Speaker:so let's talk about why.
And I want to look at,
Speaker:you said something a minute ago was
really important. You said, Hey,
Speaker:people need to take this for
10 weeks to see the results.
Speaker:So that's what you started selling, right?
Speaker:So is that like a 10 week bundle or just
sign up and you get it for 10 weeks or.
Speaker:Two pack for example,
just a two pack of lash,
Speaker:two pack of brow or a two
pack of the hair treatment.
Speaker:And that's the vibrant scalp
treatment. So use it consistently,
Speaker:use it every day. You need to
Speaker:premix that fuel, if you will.
Speaker:You want to get those hyper results
in the beginning because if not,
Speaker:people will lose interest.
Speaker:It's already hard enough that I am not a
mascara where you put it on and you get
Speaker:longer lashes immediately.
Speaker:This is something that depending on
where you are naturally with your hair
Speaker:growth cycle, it takes a
while. Get those real results.
Speaker:So some people, depending on where
they're at with that growth journey,
Speaker:they may have results right away.
But for the most part, aging women,
Speaker:who is our demographic,
me, I am the demographic,
Speaker:we don't exactly respond.
Those young bucks do.
Speaker:So it takes us a little while to
get that diesel engine revved up
Speaker:and we just need to make sure that
people are using it and then they start
Speaker:seeing results. And that's when the
excitement sets in. And then when.
Speaker:You at that point, and then you.
Speaker:Go for Vegas with your buddies and your
knees don't ache, you're like, hello?
Speaker:Yeah, exactly. Tell me what you're
taking. Tell me what you're taking.
Speaker:Yeah,
I wrote a lot statement.
Speaker:So it's a two pack so they can use it
for 10 weeks, get the best results.
Speaker:So that's the first start.
The first piece says,
Speaker:what do they need to take
to get the best results,
Speaker:whether it's a physical product,
Speaker:something you're using or something
you're putting on ingestible, whatever.
Speaker:So what do they need to take to get
the best results? Let's sell them that.
Speaker:And then what did you do in
terms of messaging or just making
Speaker:it easier to understand and to say yes to?
Speaker:Talk to me about some
specific tactics there.
Speaker:The tactic, I think
that's the most important,
Speaker:just if we're talking D two C
and just brand building is I
Speaker:had a lot of fractional
copywriters for a while,
Speaker:so we didn't have a single voice,
Speaker:and then we hired a gal who is
leading our brand and our brand
Speaker:copy and her copy then hit that whole
Speaker:customer journey.
Speaker:So what we see on our macros from
customer service is what we see
Speaker:on the post-consumer flow
for our email marketing,
Speaker:it's what they're getting
when they're seeing
Speaker:the ad perhaps on meta or wherever
they first found out that top of the
Speaker:funnel perspective. So they're seeing,
Speaker:here's what they're seeing
in the top of the funnel,
Speaker:here's the middle of the funnel,
here's the bottom of the funnel,
Speaker:here's the email marketing campaign,
here's how it's flowing with the SMS,
Speaker:here's the information they're
getting from all angles. And it all
Speaker:sounds the same and it all makes sense.
Speaker:So you're not sending mixed
messages anymore. And before,
Speaker:I'm probably guilty of having sent
more mixed messages or just not
Speaker:having that through line,
Speaker:that continuity so that we're all
just really making sure that people
Speaker:understand what we're delivering
to the customers. And it's a serum.
Speaker:I'm at my temporary desk
here, but for example, here's,
Speaker:here's a sample of the
vibrate scalp treatment,
Speaker:the lash and the brow
that's in just a single box.
Speaker:This was one of our promo boxes that
we put together. So they're all serums.
Speaker:You use 'em twice daily, once
in the morning, once at night,
Speaker:and people will inadvertently say, oh,
Speaker:so I need to keep using that product,
and if I stop using it, it stops working.
Speaker:And the answer is yes. If you stop
drinking water, you get dehydrated. Of.
Speaker:Course, yeah.
Speaker:If you stop eating food,
you get hungry. If you stop,
Speaker:I want to vitamin I can take.
Speaker:That's.
Speaker:It. Things change. But it's
still that age old question.
Speaker:And that comes from, I kid you not,
Speaker:that comes from old school
mentality before people really got a
Speaker:little bit smarter to realize that
consistency is what delivers results in
Speaker:everything. If you want
to stay fit, stay fit.
Speaker:You, I've got to keep working out. I've
got to keep sleeping well every night.
Speaker:Come on, that's want to
do it once, it's so good.
Speaker:But it's not necessarily even
a nice to have once you start
Speaker:fighting back mother
nature, it's a must have.
Speaker:And this is where that longevity game
comes in there because what we're doing to
Speaker:biohack our bodies and our
health and our wellbeing
Speaker:is really the rage right now. And
I've been biohacking since day one.
Speaker:I think the biggest thing I
did to biohack was not have.
Speaker:Children. I'm sure I've never.
Speaker:Said that out loud before.
Speaker:New biohack don't have kids.
Speaker:Turns out that's also a great
savings plan. Yeah, yeah, yeah.
Speaker:I know a lot of parents that get pretty
dang stressed right now in this world.
Speaker:There's enough stress going on.
Speaker:So I always laugh that my husband and I
are able to just pick up and go whenever
Speaker:we want. We've got all this freedom.
And I could also focus on the business.
Speaker:So truthfully,
Speaker:my business is those are my children, my.
Speaker:Members.
Speaker:That's who I care about right.
Speaker:Now. I love that. I love
that. My wife and I,
Speaker:we can get up and travel
anytime we want to as well.
Speaker:We just have eight kids that
we have to tow around with us.
Speaker:Actually they don't all live
at home. So it's not eight,
Speaker:it's only like five or
six. It's no big deal. But.
Speaker:That to me,
Speaker:I think that single voice to the
question going back to What are the
Speaker:mechanics, what can you do right now?
Speaker:What are the actionable items that
some of the individuals listening to
Speaker:can take and take from this?
Speaker:And you talked about that
ability for us to get on the
Speaker:phone.
Speaker:And something that I always say flies
in the face of what we've been taught is
Speaker:to really know your customer.
Speaker:So we do have a lot of
older women who have felt
Speaker:unseen and unheard and
undervalued in their lives.
Speaker:And so our customer service team is
empowered to spend however extra time they
Speaker:need on the phone with those
individuals until that individual
Speaker:feels like they've gotten what they need.
Speaker:And sometimes they can be on
the phone for a long time,
Speaker:which is why our gorgeous score
has probably gone from a 4.8
Speaker:and not to a five. I mean,
Speaker:we're still at 94.8% of
all gorgeous platforms.
Speaker:That's that 5% stat.
Speaker:But we stay where we're
at because one of the
Speaker:metrics that's timed on gorg is
how quickly do you answer those
Speaker:questions for people? And sometimes we
just don't answer them that quickly.
Speaker:We'll respond quickly,
but then we take our time.
Speaker:Take your time. But yeah,
Speaker:and it's more about optimizing for
satisfaction than it is to hitting some
Speaker:metrics that may indicate
satisfaction, but not always.
Speaker:And so I love the way you guys do that.
This idea of consistent communication,
Speaker:I've heard it's called the
golden thread or consistency.
Speaker:So every message we share, whether it's
a video with static image, it's on med,
Speaker:it's on YouTube, it's on Google,
it's an email, it's an SMS,
Speaker:it's all saying the same
thing. It's reinforcing,
Speaker:maybe we're hitting the same message
from a couple of different angles,
Speaker:but ultimately it's the same
thing when you get on the lander.
Speaker:Also the same message.
Speaker:Simplification and clarity
are super important.
Speaker:Sometimes we overcomplicate things
and a confused customer does not
Speaker:buy. So what are some of the messages,
Speaker:the go-to messages or what are you trying
to communicate when you're creating
Speaker:this consistency across all.
Speaker:Channels?
Speaker:We fall back always on our pillars
at elastin. So real science,
Speaker:real results, real people
and real responsibility.
Speaker:But that's the pillar.
Speaker:And then from the pillar then you
identify what is the pain point for the
Speaker:customer. And it really always
boils down to their sense of self,
Speaker:their confidence, their sense of identity,
Speaker:their desire to be the best version of
Speaker:themselves. So I'm going to go
back to what you said. You said,
Speaker:I started taking this supplement,
I feel so much better.
Speaker:I'm not hurting anymore. I wake
up, maybe you don't need coffee.
Speaker:And all of a sudden
now you didn't say, oh,
Speaker:I like where they source their product.
Speaker:They did a really good job of where
they sourced and they're environmentally
Speaker:friendly and they've done all
these things. Well, that's a given.
Speaker:Now you need to have all of that.
Speaker:You can't come into a beauty brand
right now if you're not sustainable,
Speaker:if you are not taking care of
vegan and cruelty-free and no
Speaker:preservatives and all of the lists. So
we call those our safe science standards,
Speaker:but you can't lead with that
because nobody buys a product.
Speaker:Nobody buys a product because it's got
the best biodesign proteins and the most
Speaker:peptides.
Speaker:For sure.
Speaker:That doesn't sell. What sells is,
does it do what they want it to do.
Speaker:So the message has to always be about
what the customer needs and what
Speaker:that pain point is that we're solving
or what that aspiration is that they're
Speaker:looking to gain. And then ultimately,
Speaker:if we don't deliver the
product that really works,
Speaker:they're never going to come back again.
Speaker:But the other flip side is
because of where people are,
Speaker:whether they've got thyroid
Speaker:post-treatment, post stress,
aging, loss of elastin,
Speaker:naturally too much sun, exposure,
exposure, environmental,
Speaker:stressing out about what's happening in
our political and our culture right now,
Speaker:all of these things are causing
people to lose their hair.
Speaker:And we saw this during Covid as well.
Speaker:So what we also have to do at
Neulasta is we have to look at how we
Speaker:can kind of bundle that and make
sure that we're still giving the
Speaker:customer the time they
need to get the results.
Speaker:So if 12 weeks isn't enough,
Speaker:I'm going to take care of them and give
them more product so that they get the
Speaker:results they're asking for. And whether
I do that sometimes with free product,
Speaker:sometimes with a deeper discount, but
if they call me, I will literally say,
Speaker:you didn't start this journey because
you were just trying something.
Speaker:You want something.
Speaker:So I'm going to give that to you for
as long as it takes till you get that
Speaker:result.
Speaker:That's so good. That's so good.
Speaker:Talk to me about the
process of reducing churn.
Speaker:You talked about some
of the programs you run.
Speaker:If someone's about to cancel their
subscription, how do you mitigate that?
Speaker:What are some of the
strategies that you've used?
Speaker:Most recently, it's
going to go back to just
Speaker:that very,
Speaker:very powerful buy box that
people are seeing so that the web
Speaker:functionality, I believe I mentioned
this, smoother, faster, smarter,
Speaker:but that buy box, which is the small
powerful decision point, right?
Speaker:That's transformed so
that it now has above
Speaker:the fold because before
it wasn't above the fold,
Speaker:but it's a smarter way of
customers to get the right
Speaker:cadence with the right
subscription that they needed.
Speaker:And then as they go through
the checkout process,
Speaker:not too many more decisions to make,
Speaker:but then there are some upsells
and there are some cross sells,
Speaker:but mainly trying to serve the
customer with a very smart flow
Speaker:so that they don't have to
get confused or question it.
Speaker:So the result of that alone
with that buy box and the web
Speaker:functionality was a 13.4%
increase in conversion rate.
Speaker:So we immediately started getting that.
Speaker:And then the next part of
it is just continuing to
Speaker:innovate when we see
something that's not working.
Speaker:We work with the web partner now
and we try to innovate and solve
Speaker:around the entire customer journey and
anticipate their needs so that we can
Speaker:exceed those expectations.
Speaker:Yeah, it's so good. I'm looking
at your detail page now,
Speaker:and we'll put this in the video
version. If someone's on YouTube,
Speaker:they can see it. But I love
the way this is laid out.
Speaker:So the top section you automatically
selected subscribe and save 25%.
Speaker:You got three different options,
deliver every eight weeks.
Speaker:In the middle it says deliver 10 weeks,
Speaker:it's got a check mark and it's bolded
and it says recommended right under it.
Speaker:And then or deliver every 12 weeks. And
it says free shipping, cancel any time,
Speaker:full flexibility, try really compelling,
Speaker:and then it's got the strikethrough price
and the price that you'll pay saving
Speaker:25%. And then below that you
could choose a one-time purchase.
Speaker:You save 12% that way. What is,
Speaker:so you talked about 65% of
your revenue is subscriptions.
Speaker:What's the take rate on subscriptions
when someone's checking out with these
Speaker:products?
Speaker:I don't have that answer
off the top of my head.
Speaker:It's got to be a pretty high,
Speaker:it's got to be a high take rate since
everything else is off the charts as well.
Speaker:Being the owner of the
company and the founder,
Speaker:I always get just a little bit
puckered up there because you still
Speaker:have people who want that big deep
discount and they're playing the game.
Speaker:So you're always going to get
the people who are like, oh,
Speaker:I can get free shipping. Oh, I
can get this really deep discount,
Speaker:possibly almost 30% on my first order.
Speaker:And they have absolutely no
intention. They're playing the field.
Speaker:They might be doing the stance
with a lot of other companies,
Speaker:but ideally if they've purchased
two products from us or the Tupac,
Speaker:then they are going to see results.
Speaker:And they might have a aha
moment themselves where they
stick around for a little
Speaker:bit longer. But
Speaker:it is high,
Speaker:and we're working on it because we
actually didn't have as robust of
Speaker:a landing page funnel as we do now.
Speaker:It's still not the Ezra Firestone funnel,
Speaker:but that is something that we're working
on so that we have the capacity now
Speaker:to build out more landing pages
so that it makes it easy for that
Speaker:first take rate. I want to
say 80%, but I might be wrong,
Speaker:so don't quote me and hold
me to that particular number.
Speaker:With every other number being off the
charts, the take rate's got to be really,
Speaker:really healthy as well.
Speaker:And so can you talk about the landing
page work that you guys are doing?
Speaker:Is that tying specific
offer to specific ad
Speaker:and what are you doing and any
interesting learnings with that journey?
Speaker:Yes, better. It's still not set up.
Speaker:I've seen so many great landing pages
that I start falling in love with,
Speaker:but if they're seeing an ad for,
Speaker:with a particular human being being
featured in an age category and an
Speaker:offer for lash,
Speaker:and then they come over to a PDP
page as a checkout page versus going
Speaker:to a landing page where then we continue
selling them on that journey where then
Speaker:we get that buy box that really
speaks to what they're after,
Speaker:because at that point, they
don't want to mess around.
Speaker:They just want to get in there.
I'm like, yeah, that's what I want.
Speaker:That's what I want to buy.
Speaker:So you want to make sure that
you're not confusing them.
Speaker:And that's what we've been trying to do
is follow that journey from what ad they
Speaker:saw on meta, for example,
Speaker:to where they land and get that checkout.
Speaker:And it's the landing page strategy
is by far the best performer,
Speaker:but we also find that our PDP pages are
equally as good. And back in the day,
Speaker:we were sort of, and we would just go
to the homepage and that was a disaster.
Speaker:I mean, it works a little bit, but it's
just, it's too much. It's like too much.
Speaker:Nobody wants to.
Speaker:Yeah, you're introducing too
many options in most cases.
Speaker:But I will say, yeah, your PDP, which
is what I just showed a second ago,
Speaker:it's fantastic. And.
Speaker:That's only the landing page.
Speaker:So I can send you links to
get to the landing pages,
Speaker:which are those mysterious pages that
unless you're following a particular link,
Speaker:you'll never find again. I was laughing
about that the other day. I'm like,
Speaker:geez, even I own the company and
sometimes if I can't find my landing page,
Speaker:I'm like, what's that foreign slash,
Speaker:where did we go and how do you get back
to it again? So funny, once I lose it,
Speaker:man, I can't find it again.
Speaker:And that's an old anchor trick that I
learned from back in the day of direct
Speaker:response infomercial is they
were just classic landing
Speaker:page.
Speaker:Marketers.
Speaker:It was just.
Speaker:Guthy Riner legends, legends in the game.
Speaker:And so what did you do with them again?
Speaker:Was that one of your products
or you worked with Guthy Riner?
Speaker:No, but I was in the infomercial world,
Speaker:so that's kind of where I cut my teeth
with direct response marketing is I
Speaker:started in the direct response.
Speaker:I was selling on HSNA particular AB belt,
Speaker:and then I helped launch the
contour core sculpting system,
Speaker:and that's a product that was in 2008,
Speaker:one of the most successful
shows of its time.
Speaker:And we went from zero to 220 million
Speaker:in about three years,
Speaker:and we had a seven to one media
Speaker:marketing efficiency ratio.
Speaker:So.
Speaker:Seven to one.
Speaker:A seven mer. Everyone listing is like.
Speaker:Come, we're back in the day,
Speaker:the Anthony Sullivans
and the Cindy Crawfords,
Speaker:but we were watching them, they were
watching us. We were all competing.
Speaker:But it was back,
Speaker:it was in the good old days
where crepe erase was rocking.
Speaker:And I mean, I am old,
Speaker:so I remember the Suzanne Summer's in.
Speaker:I remember watching the ThighMaster.
Speaker:X.
Speaker:90 XI bought because of P 90 X. Yeah,
Speaker:actually friends that ran
the erase campaigns and.
Speaker:Stuff. But I always ask, do we reflect,
Speaker:and this is something I said in one of
my presentations recently is do we ever
Speaker:reflect on that is really where we learned
the formula for our direct response
Speaker:marketing. And they had three segments,
Speaker:28 minute show compelling
problem solution,
Speaker:and H one had a call to action. So if
you're jumping in somewhere in between,
Speaker:it's here's how we're going to
save you time, money, energy,
Speaker:get you what you're looking for. Here's
your call to action. If you order now,
Speaker:you're going to get this, this, this,
and this. But wait, there's more.
Speaker:And all that stuff worked. And
you know what? It still kind of.
Speaker:Works. It still works. Maybe you're
executing it a little bit differently.
Speaker:But the psychology there,
the problem solution,
Speaker:the presenting it in a compelling way
and an engaging way with high energy,
Speaker:it still works. And that's something
you and I were talking about.
Speaker:I'm a huge YouTube guy.
Speaker:We are seeing a lot of people that
have been historical TV advertisers now
Speaker:trying YouTubes. We're leaning into that.
Speaker:Love.
Speaker:It. But I'm also seeing
some D two C brands,
Speaker:brands that are born online that
are now leaning into connected tv,
Speaker:whether that's through
YouTube or other platform,
Speaker:and they're dabbling in TV advertising,
but it's direct response style,
Speaker:TV advertising,
Speaker:getting someone to take an action to
visit a site to get a free download or to
Speaker:free trial, whatever.
Speaker:Just works. I think we need to be more
clever and I need to meet more of a brand
Speaker:recognition. I tried some,
Speaker:our mutual colleague Stacy
helped me try to buy some linear
Speaker:TV spots. It just didn't work for us,
Speaker:but we didn't do enough. It
wasn't long enough, deep enough.
Speaker:But elastin as big of a
brand as I think we are,
Speaker:we're still not a name brand.
Speaker:So you can walk down the street and people
aren't going to really recognize us.
Speaker:So we're staying somewhat niche
in that. We have, I believe,
Speaker:the best science in the industry,
Speaker:and I would challenge anyone to match our
38 US and international patents all in
Speaker:the elastin space.
Speaker:It's.
Speaker:Amazing.
Speaker:We've got a category that no one else
is really focusing on to our depth
Speaker:and breadth. But at the end of the
day, again, science isn't selling.
Speaker:So now I've got to be able to just
communicate to people that we have a
Speaker:beautiful product with a founder
and an entire team that cares
Speaker:deeply for that customer journey and
that we're going to do everything in our
Speaker:power to get them the results that
they want. And they can also trust.
Speaker:I think small brands,
Speaker:one of the beauties is that they can
trust the integrity that goes behind it
Speaker:and that what we say is what we do.
Speaker:Sometimes when you get that
thought of a big brand,
Speaker:you kind of wonder did they lose it?
Speaker:So if JJ buys a business and all of
a sudden you see it on the shelf at a
Speaker:target, then old school
people would think, oh,
Speaker:they must have done something different.
Speaker:Now it's lost its allure or it
doesn't have the same formula.
Speaker:And maybe they're right.
Speaker:Maybe people take a formula,
Speaker:they buy a company and then they fairy
dust the active ingredients and it might
Speaker:not have the same punch that happens.
Speaker:Right? Right. Yeah. I think
your passion rings true.
Speaker:Listening to you talk and if someone
can see you or hear you talk in an ad,
Speaker:it's clear you're going to do whatever
is necessary for someone to get the
Speaker:results that they want, which is
great. I want to kind of end on this.
Speaker:We only have a few minutes left,
Speaker:but times are uncertain right
now at the time we're recording,
Speaker:we're dealing with some
tariff, chaos and madness.
Speaker:Consumer confidence is at a low.
Business owners are worried.
Speaker:We work almost exclusively
with D two c e-commerce brands.
Speaker:Many of our clients
don't import from China,
Speaker:and so they're feeling a little
bit better than those that do,
Speaker:but there's still just
uncertainty everywhere.
Speaker:So what advice do you have and
what are you leaning into now when
Speaker:times are uncertain?
How are you operating?
Speaker:I have been guilty of falling
into a trap of feeling
Speaker:the scarcity mentality and the panic,
Speaker:but I am doing everything that I can to
try to come from a point of abundance,
Speaker:and that might be a little too
metaphysical for this podcast,
Speaker:but I literally need to stay true to
Speaker:what we do over here. We need to
make money to stay in business,
Speaker:but do I need to make a 94% contribution
Speaker:margin every day, all day? Probably not.
Speaker:I need to take a hit
with everybody going in,
Speaker:and I'm willing to do that so that I
don't have to put it on my customers.
Speaker:During covid, when people were upping
their prices, I stayed the same.
Speaker:As a matter of fact,
just earlier this year,
Speaker:first time I increased
my prices since 2017,
Speaker:I am going to do everything
I can to get clever to
Speaker:figure out how to,
Speaker:I only get packaging from China,
only my primary packaging. So that's
Speaker:the stuff that you see, like this.
Speaker:Packaging.
Speaker:And I get a few, and it's not pretty.
Speaker:You don't want to pay something that might
cost you 60 cents and all of a sudden
Speaker:have to pay $2 for it
depending on where you're at.
Speaker:I've got a product right now on the water
that was a little scalp scrubber that
Speaker:I got from China, and it
was a 50 cent product.
Speaker:And right now we don't know
because when it went on,
Speaker:it was before the tax went up to 148%.
Speaker:And at the end of the day, if I have to
pay the tax, what going to do? Say, no,
Speaker:I'm going to send it back. That's
one option. It is an option.
Speaker:My CFO said,
Speaker:you need to deny shipments coming over
right now so that you don't have to pay
Speaker:$26,000 in taxes that you don't
know where it's going. And I agree.
Speaker:And then tomorrow they could
change it and I could end up paying
Speaker:$12,000 in taxes versus a 46 versus
a hundred thousand dollars in
Speaker:taxes. So it's huge. I mean, it's
going to cut into profit margins,
Speaker:but my hope is that smarter
brains will prevail.
Speaker:That somebody will at some point talk
to the government and talk to somebody.
Speaker:And there's got to be,
Speaker:if enough of us come together
without being hysterical and
Speaker:we have those smart conversations,
Speaker:we have to reach a point
where there's stability.
Speaker:And I will do everything
I can to join that
Speaker:movement if it happens.
Speaker:But otherwise I am just not going to
bring stuff over. That's a nice to have.
Speaker:It's got to be a must have.
Speaker:Totally. Yeah.
Speaker:And I think it's a really good take
where a couple things to keep in mind,
Speaker:and you talked about mindset. I think
that is underrated in some ways where yes,
Speaker:we get tactical on this podcast.
Speaker:We want to look at how can we increase
our subscription take rate and how can we
Speaker:reduce churn and things like
that. But your mindset matters,
Speaker:and if you are overly stressed
or panicking, you're going
to make bad decisions.
Speaker:You're going to craft bad marketing,
it's just not going to work well for you.
Speaker:So work on the mindset. It will
only make everything else better.
Speaker:But I always believe there's
always a move to make.
Speaker:There's always something you can do and
every other one of your competitors is
Speaker:dealing with the same
stuff you are dealing with.
Speaker:So if you can be more scrappy,
more resourceful, more crafty,
Speaker:you can find edges.
Speaker:And it's like there are always
opportunities in crazy times like this.
Speaker:I do believe there'll be adjustments
made with tariffs and stuff.
Speaker:Who knows what that will be or
when or what direction it'll be.
Speaker:But I think you're smart. How can we
limit what we're bringing over right now?
Speaker:I'm hearing that from a
lot of different customers.
Speaker:How can we just bring over the essentials.
Speaker:Or how do we work together?
Speaker:So let's say there's five of us in the
beauty industry that have a similar
Speaker:product that might be coming.
Speaker:Why not set up another manufacturing
or another warehouse, for example,
Speaker:somewhere without taxes? Share the cost
on that, bring product over. I mean,
Speaker:this is a time where we need to
kumbaya and lean in with one another.
Speaker:There's ways around this. Even if it
doesn't change, I'm hoping it changes,
Speaker:but if it doesn't change, let's
not panic. Let's collaborate.
Speaker:Let's work together. Let's figure it out.
Speaker:Yeah. Yeah. I love that. I
love that so much. And yeah,
Speaker:there will be winners during
this season. No doubt.
Speaker:It's just not easy and not overly
fun, but it's where we are.
Speaker:And so got to focus on solutions. Leah,
Speaker:this has been absolutely
fantastic. I love your brand.
Speaker:I love the energy you bring.
I love what you're building,
Speaker:and we need to catch up again soon
sometime. So thanks for coming on.
Speaker:Thank you very much. We didn't
even talk about bull riding,
Speaker:but we'll get to that later.
Speaker:Bull riding next time. So I
will end with this though.
Speaker:People have to follow you on social.
So you're a great follow on LinkedIn,
Speaker:but you're also active on
Instagram and other channels.
Speaker:Yes, yes. I'm still old
school, Leah Garcia TV Act.
Speaker:Elastin is where the brand is found, but
Speaker:I am more on the speaking
circuit these days.
Speaker:So LinkedIn is probably one of the
best places to find my whereabouts.
Speaker:And you got some great content recently
about those speaking engagements,
Speaker:so check it out. Leah Garcia on
LinkedIn and Instagram. Leah,
Speaker:thank you so much. This has been an
absolute pleasure and we'll chat soon.
Speaker:I'm stoked. Thank you so much. Cheers.
Speaker:Awesome. As always,
thank you for tuning in.
Speaker:Would love to hear feedback
from you. If you've not left us,
Speaker:that review on iTunes means
the world to us. And with that,
Speaker:until next time, thank you for listening.